I'd be happy to send some info over to Raj and co.

Something that isn't intuitively obvious is that American Honda Finance Corp, as well as some banks, weight Car Payment Lates heavier than personal credit lates. A car payment late is a red flag. A repo is a stadium-sized red flag.

AHFC also looks down upon not-on-time payments. If a person is more than 10 days late paying Honda, they "yellow flag" your record with Honda. That does not go on your formal credit report...but since Honda is among the most forgiving of the major financial institutions...it's not a good thing to be a slow-payer with them.

 

That's easier said then done. I've disputed all of them. But what I experienced is that the Bureau's take there time and they also make it hard on you. If it's not one piece of information that's missing, it's another and so on. I actually hired a lawyer to help me. He did a great job. They seem to have responded alot quicker to him. But I just finally noticed that they are not on my credit about a month or 2 ago and I still don't see a difference in score. If I look at the report, I see a bunch of OK's, some 30 days (not much, just like 3 scattered) which I know is bad but definitly alot more OK's. I'm hoping removing those errors will boost it. It should.

but, like I said earlier, I read to where it can take up to 3 months before you see a change in score. Also, my car balance of $1400 is still on there (2200 on Trans) even though I paid it off about a week or 2 ago and those are old balances. It just takes a awhile I guess.

What really sucks and ticks me off is, they messed up my credit by having all these errors on it, and I pay for it.

 

Keep in mind that FICO isn't just about lates. Debt-to-income ratio, amount of credit that you use (how much is on your cards, compared to how much credit you have issued), # of inquiries in the last 90 days, number of active credit accounts you have, length of time that you have had credit...that all contributes to your score.

 

I don't have any active credit cards right now. I paid them off except for one but that one is closed also (I closed it). I owe maybe 60% of it. Is it bad I don't have any credit cards right now open? It seems to me, these people want you to fall into dept.

And my debt-to-income. My debt in total is a little less that %20 of my income. And that includes my school (no more car). It doesn't make sense.

I'll just keep paying more on the bills and hope that clearing those errors and paying off the car helped.

You know, I've always wished they had classes in High School that taught you all about credit.

 

Just keep working on it is my best advice. I've found that if you absolutely need to miss any payments pay your rent, credit cards, and loans first, and make partial payments on phone or gas bills, as a missed payment on gas and phone bills don't appear on your credit rating, in my experience.

I managed to build up outstanding credit in only a couple of years. The thing that worked for me is that I got a credit card with the bank I bank with. Then I signed up for on-line banking, and I could access both accounts and transfer money between them. I use the credit card occasionally for everyday type purchases (gas, groceries, etc.), then every 2 weeks I go and pay it off in full on-line so I don't get charged interest. I'd use it for large purchases too and carry a balance for no more than 3 months. Within 3 years from absolutely no credit, I was in the low to mid 700s even with an existing car loan (found out as I applied for another loan through AHMC and got their premium APR for the second car).

Good luck!

 

Remember that the number of inquiries also factor into your score. For people trying to rebuild credit, take out a loan, put the money in savings and pay it off slowly over time.

Keep a few credit cards open but do not use them, this will show a larger 'available credit' figure. ie. "revolving credit available 80%" if you have two 5K max cards with less than 1000 on them.

Other factors that affect qualifying but do not show up on you score, time on the job (if this is short, time in the same field). Home ownership. Already mentioned, the deal structrue of the car you're trying to buy. IMO most banks will buy a loan where they have a 5K down payment on a 20K car. Your score may only affect your rate, not getting or not getting the loan. For those wondering, AHFC like applicants over 720 the most.

 

[QUOTE]Originally posted by i8a4rE

 

I don't think you're slamming me. I appreciate your info.

For the classes part, the reason I mention it is because I'm young and I have friends in college. Some of them have credit cards maxed out. Or I hear of kids who do. If I asked most of them (College Students or High School)what are the 3 Credit Bureau's, I doubt they can tell me. I doubht they would care. Seniors in high school don't know how to invest their money. They don't how to check credit and what to look for. Don't get me wrong, some might know how too because of their parent. I hear NOW they are starting to teach it in high school.

Yes, I agree it's common sense, but we are talking Kids here. When they can whip out a piece of plastic and buy goodies, they will. It happens all the time. I don't honestly think they realize the consequences. I also believe it's up to the parents to teach their kids about money and how to properly save and spend it.

But anyway, I appreciate everyones comments.

 

You're absolutely right, this stuff should all be taught in college, or high school.

Most people have no clue until it's too late, and get stuck in the credit trap.

If you want to read some basic stuff, try reading books such as "The millionaire next door", or "The four laws of debt free prosperity", which are just a couple I read this week.

 

[QUOTE]Originally posted by i8a4rE
I don't think you're slamming me.